PwC’s ‘Global entertainment and media outlook 2016-2020: US edition’ claims that SVOD revenue will climb from US$6.4 billion in 2015 to US$10.4 billion in 2020.
The 2015-2020 compound annual growth rate for subscription VOD will be 10%, for transactional VOD will be 8%, but for pay TV subscriptions will be 0%, according to the study.
“As consumer wants and expectations continue to change, so too does the TV and video industry. Today’s and tomorrow’s definition of what it means to be a ‘media company’ will continue to evolve, as companies – not just entertainment and media companies – invest in content and direct customer media relationships,” said PwC.
“We will continue to see a rapid increase in new entrants and competitors in the space as subscriber-based businesses continue to consolidate. Operators are also attempting to target cord-cutters and cord-nevers by marketing their OTT streaming and download services – two areas that will represent tremendous growth potential for this industry’s foreseeable future.
PwC estimates that overall TV and video revenue will rise from US$121.4 billion to $124.2 billion in 2020, marking 0.5% CAGR, but noted that the continued growth of VOD and OTT services is putting pressure on the ‘theatrical window’ period traditionally enjoyed by cinemas.
In total, US entertainment and media spend – across all categories, including music, video games and publishing – is tipped to grow from US$603 billion in 2015 to US$720 billion by 2020.